Premier boosted by profit rise and drilling tests

Premier Oil, the UK exploration and production firm, yesterday reported a 64% rise in first-half profits on the back of high oil prices, and Bridgewell Securities said it would increase its valuation for the company after drilling results, which according to Premier's chief executive, Simon Lockett, indicated the company's Vietnam fields could be commercially exploitable.

Premier also reported positive results from drilling in Indonesia but there remained a question over its Tiof field in Mauritania. Net profits of $33.7m (£17.7m) were short of some City forecasts as production levels declined.